IRA income limits for 2018

Overview

ROTH IRA and traditional IRA account contributions are subject to income phaseout limits. In the case of the ROTH IRA the limits are related to eligibility and in the case of a traditional IRA the limits are related to deducting the contributions. If you exceed these limits you may want to consider alternatives for deferring taxes on your retirement savings. There are many options available depending upon your particular situation. In general, business owners and self employed individuals have more options available to them than do W-2 employees. The details of the income and phaseout limits are discussed in detail below.

ROTH IRA income limits

You are typically able to make a ROTH IRA contribution if your income falls below certain levels. If you are married filing jointly, you can make a full ROTH IRA contribution if your modified adjusted gross income (MAGI) is less than $189,000 for the 2018 tax year. You can make a reduced contribution if your MAGI is between $189,000 and $199,000, and contributions are disallowed altogether if your MAGI is greater than or equal to $199,000.

If your tax filing status is single or head of household you may make a full ROTH IRA contribution for the 2018 tax year if your MAGI is less than $120,000, a reduced contribution if your MAGI is between $120,000 and $135,000, and no contribution at all if your MAGI is greater than or equal to $135,000.

If you are not able to make a ROTH IRA contribution due to income restrictions, you may want to investigate whether or not your employer offers a ROTH 401K plan. If they do not, you should consider making a request to your employer that a ROTH 401K plan be implemented.

ROTHIRA income limits for 2018 tax year

filing status

income limit

Married filing jointly

full contribution allowed for MAGI less than $189,000; phaseout for MAGI between $189,000 and $199,000, no contribution allowed for MAGI greater than or equal to $199,000

Single

full contribution allowed for MAGI less than $120,000; phaseout for MAGI between $120,000 and $135,000, no contribution for MAGI greater than or equal to $135,000

Head of household

full contribution allowed for MAGI less than $120,000; phaseout for MAGI between $120,000 and $135,000, no contribution for MAGI greater than or equal to $135,000

Married filing jointly (and lived with spouse at any time during year)

phaseout for MAGI between $0 and $10,000, no contribution for AGI greater than or equal to $10,000

Traditional IRA income limits

There are no income restrictions related to making a contribution to a traditional IRA, however you may not be able to deduct the contributions if you or your spouse participates in a retirement plan at work. If you or your spouse participate in a retirement plan at work, the deduction begins to phaseout at $63,000 MAGI for single or head of household ($101,000 for married filing jointly) and phases out completely at $73,000 MAGI ($121,000 for married filing jointly). These numbers are for the 2017 tax year. If you are in this situation, you should consider contributing to your retirement plan at work, such as a 401K plan, as you will be able to deduct these contributions up to their limit.

TraditionalIRA income limits for 2018 tax year

filing status

no retirement plan at work

retirement plan at work

spouse has retirement plan at work (and you do not)

Married filing jointly

no limits

full deduction up to contribution limit if MAGI less than $101,000, partial deduction for MAGI between $101,000 and $121,000, no deduction if MAGI is greater than $121,000

full deduction if MAGI less than $189,000, phaseout for MAGI between $189,000 and $199,000, no deduction if MAGI is greater than $199,000

Single

no limits

full deduction up to contribution limit if MAGI less than $63,000, partial deduction for MAGI between $63,000 and $73,000, no deduction if MAGI is greater than $73,000

N/A

Head of household

no limits

full deduction up to contribution limit if MAGI less than $63,000, partial deduction for MAGI between $63,000 and $73,000, no deduction if MAGI is greater than $73,000

N/A

Married filing separately

no limits

partial deduction for MAGI between $0 and $10,000, no deduction if MAGI is greater than or equal to $10,000

partial deduction for MAGI between $0 and $10,000, no deduction if MAGI is greater than or equal to $10,000